What is Bankruptcy Fraud and How Do I Avoid It?

1. What is Bankruptcy Fraud and How Do I Avoid It? Bankruptcy fraud takes on many forms. Generally speaking, it refers to fraudulent actions taken by bankruptcy filers in order to try and conceal assets so as not to forfeit them. The consequences for bankruptcy fraud are quite serious and could include jail time when you are found to be guilty of lying and dishonesty, making misleading statements, and withholding information or perhaps of outright fraud in your bankruptcy proceedings. Protecting yourself from bankruptcy fraud is one of the main reasons why you should seriously consider hiring a ​personal bankruptcy attorney​​(or a​​business bankruptcy attorney when filing for business bankruptcy) when you are faced with bankruptcy or a debt that you are having a tough time to repay. Bankruptcy fraud refers to any attempt to cheat, manipulate, or deceive the court in bankruptcy proceedings. A common example of this is concealing assets. Disclosing all your assets— every single asset that you own—is a requirement when filing for bankruptcy. Hiding any particular asset only for it to surface later in your proceedings could come and bite you from behind, and your entire bankruptcy case will be for naught. Making threats to creditors is also grounds for bankruptcy fraud, including threats to cease doing business with them if they do file bankruptcy against you. This is considered a form of extortion, which is also a form of fraud. The whole point of the bankruptcy process is to get an accurate picture of all the assets that a debtor possesses and all the claims held by his or her creditors. Extralegal attempts aimed at interfering with this process can hurt your case and put you in hot water for bankruptcy fraud. Other common forms of bankruptcy fraud include charging a huge amount or purchase on your credit card right before filing for bankruptcy and withholding, without good reason, important documents like mortgage statements. Attorneys of Glendale​ specialize in Bankruptcy Law, which revolves around providing relief for those who need help in eliminating certain debts. If you are in need of assistance in navigating bankruptcy filing, either personally or for your business, a bankruptcy attorney is someone who can help you through the entire process so you can come to the other side with both feet on the ground, ready to pick-up and improve your finances. Hiring a personal bankruptcy attorney​​will also help protect you from mistakenly committing bankruptcy fraud by allowing you to go through the proper procedures of filing so you can file for bankruptcy in an honest, non-fraudulent manner.